Nomura remains optimistic about Hero MotoCorp, citing rural market improvement and robust industry growth, while Citi sees long-term potential in Grasim Industries, despite a dip in Q2 performance, with its paints and VSF segments showing promise.
Meanwhile, CLSA emphasizes Crompton Greaves Consumer Electricals’ sustained growth and margin improvement, positioning the company well for a potential re-rating, supported by strong medium-term visibility.
We have collated a list of recommendations from top brokerage firms (ETNow and other sources):
Nomura on Hero MotoCorp: Buy | Target Rs 5,805 | CMP Rs 4,604 | Upside 26%
Nomura has maintained a Buy rating on Hero MotoCorp, raising the target price to Rs 5,805 from Rs 5,663, reflecting a potential upside of 26% from the current market price of Rs 4,604. The brokerage highlights rural market improvement as a key catalyst for growth.
Hero MotoCorp’s Q2 results met expectations, showing healthy earnings growth and attractive valuations, with room for margin improvement. Nomura expects the two-wheeler (2W) industry to grow by 10% over FY25-26, supported by favorable monsoon conditions and a rural market recovery.
Citi on Grasim Industries: Buy | Target Rs 3,100 | CMP Rs 2,528 | Upside 22%
Citi has maintained a Buy rating on Grasim Industries but reduced the target price to Rs 3,100 from Rs 3,250, indicating a potential upside of 22% from the current market price of Rs 2,528.Despite Q2 performance falling short of expectations, Citi remains positive on the company’s paints business, which is on track to achieve a high single-digit market share by FY25. The VSF segment showed improvement, while the chemicals segment faced sequential weakness.
CLSA on Crompton Greaves Consumer Electricals: Outperform | Target Rs 500 | CMP Rs 371 | Upside 34%
CLSA has maintained an Outperform rating on Crompton Greaves Consumer Electricals (CG Consumer) with a target price of Rs 500, indicating a potential upside of 34% from the current market price of Rs 371.
The company’s results were in line with expectations, and CLSA highlights the strong medium-term growth visibility as crucial for a potential re-rating. CG Consumer’s growth momentum remains strong, with notable margin improvements, and the brokerage notes several growth levers in place for continued expansion.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times)